RCA Insights

Canadian Acquisitions in US Reach Record Level

By on November 27th, 2018

Canadian acquisitions in the U.S. have reached a record level due to a cluster of large entity-level deals, the latest US Cross-Border Investment Compendium shows. Canadian investors were behind 41% of all cross-border volume in the U.S. in the year through the third quarter, more than the next four biggest country sources combined.

French investors were the second largest investor group in the year through the third quarter, due in large part to the Unibail-Roadmco purchase of Westfield earlier in 2018. Singaporean investment in the U.S. slipped by 16% and this group of investors fell to the number three spot. Activity from Chinese investors fell by more than 50% but they retained their position as the fourth largest investor group. Germany was the fifth largest source of cross-border investment.

Without Canadian investors such as Brookfield AM, the CPP Investment Board, OMERS and CDPQ, the momentum for cross-border activity in the U.S. would have stalled into the third quarter. Deal volume from investors other than Canadians slipped to $45.6 billion versus a $46.3 billion level in the 12 months to the second quarter. This slowdown came despite a number of entity-level transactions involving cross-border investors from outside the Americas.

1811 Compendium MAIN_v3_150-01

If you are a current RCA subscriber log into your account to download the US Cross-Border Investment Compendium PDF and data file for Q3’18 from the RCA website. To get more information about becoming a client, contact us

Jim Costello

Jim Costello

Senior Vice President
jcostello@rcanalytics.com

Jim Costello has worked in the CRE space on issues of urban economics since 1990, including a 20-year stint at Torto Wheaton Research. Jim expanded the reach of the Torto Wheaton Research team developing forecasts of global market fundamentals. He also developed approaches to pair the forecast results with frameworks to answer investor questions on asset values and relative investment opportunities.

In the aftermath of the Global Financial Crisis, Jim provided advice to the Treasury Department and helped educate these professionals on commercial real estate performance. Jim is a member of the Commercial Board of Governors of the Mortgage Bankers Administration, where he helps policy makers understand the commercial real estate industry.

Jim is expanding the capabilities of the Real Capital Analytics team on issues of real estate market dynamics. Jim has a master’s degree in economics and is a member of the Counselors of Real Estate.